Agency Information Collection Activities: Information Collection Renewal; Comment Request; Fiduciary Activities, 55306-55308 [2024-14611]

Agencies

• Office of the Comptroller of the Currency
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 89, Number 128 (Wednesday, July 3, 2024)]
[Notices]
[Pages 55306-55308]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-14611]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Comment Request; Fiduciary Activities

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.

ACTION: Notice and request for comment.

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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites comment on a continuing information 
collection, as required by the Paperwork Reduction Act of 1995 (PRA). 
In accordance with the requirements of the PRA, the OCC may not conduct 
or sponsor, and the respondent is not required to respond to, an 
information collection unless it displays a currently valid Office of 
Management and Budget (OMB) control number. The OCC is soliciting 
comment concerning the renewal of its information collection titled, 
``Fiduciary Activities.''

DATES: Comments must be received by September 3, 2024.

ADDRESSES: Commenters are encouraged to submit comments by email, if 
possible. You may submit comments by any of the following methods:
     Email: [email protected].
     Mail: Chief Counsel's Office, Attention: Comment 
Processing, Office of the Comptroller of the Currency, Attention: 1557-
0140, 400 7th Street SW, Suite 3E-218, Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
     Fax: (571) 293-4835.
    Instructions: You must include ``OCC'' as the agency name and 
``1557-0140'' in your comment. In general, the OCC will publish 
comments on www.reginfo.gov without change, including any business or 
personal information provided, such as name and address information, 
email addresses, or phone numbers. Comments received, including 
attachments and other supporting materials, are part of the public 
record and subject to public disclosure. Do not include any information 
in your comment or supporting materials that you consider confidential 
or inappropriate for public disclosure.
    Following the close of this notice's 60-day comment period, the OCC 
will publish a second notice with a 30-day comment period. You may 
review comments and other related materials that pertain to this 
information collection beginning on the date of publication of the 
second notice for this collection by the method set forth in the next 
bullet.
     Viewing Comments Electronically: Go to www.reginfo.gov. 
Hover over the ``Information Collection Review'' tab and click on 
``Information Collection Review'' from the drop-down menu. From the 
``Currently under Review'' drop-down menu, select ``Department of 
Treasury'' and then click ``submit.'' This information collection can 
be located by searching OMB control number ``1557-0140'' or ``Fiduciary 
Activities.'' Upon finding the appropriate information collection, 
click on the related ``ICR Reference Number.'' On the next screen, 
select ``View Supporting Statement and Other Documents'' and then click 
on the link to any comment listed at the bottom of the screen.
     For assistance in navigating www.reginfo.gov, please 
contact the Regulatory Information Service Center at (202) 482-7340.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer, 
(202) 649-5490, Chief Counsel's Office, Office of the Comptroller of 
the Currency, 400 7th Street SW, Washington, DC 20219. If you are deaf, 
hard of hearing, or have a speech disability, please dial 7-1-1 to 
access telecommunications relay services.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501 et seq.), 
Federal agencies must obtain approval from the

[[Page 55307]]

OMB for each collection of information that they conduct or sponsor. 
``Collection of information'' is defined in 44 U.S.C. 3502(3) and 5 CFR 
1320.3(c) to include agency requests or requirements that members of 
the public submit reports, keep records, or provide information to a 
third party. Section 3506(c)(2)(A) of title 44 generally requires 
Federal agencies to provide a 60-day notice in the Federal Register 
concerning each proposed collection of information, including each 
proposed extension of an existing collection of information, before 
submitting the collection to OMB for approval. To comply with this 
requirement, the OCC is publishing notice of the renewal of this 
collection.
    Title: Fiduciary Activities.
    OMB Control No.: 1557-0140.
    Type of Review: Regular.
    Affected Public: Businesses or other for-profit.
    Description: The OCC regulates the fiduciary activities of national 
banks and Federal savings associations (FSAs), including the 
administration of collective investment funds (CIFs), pursuant to 12 
U.S.C. 92a and 12 U.S.C. 1464(n), respectively. Twelve CFR part 9 
contains the regulations that national banks must follow when 
conducting fiduciary activities, and 12 CFR part 150 contains the 
regulations that FSAs must follow when conducting fiduciary activities. 
The OCC's CIF regulation in 12 CFR 9.18 governs CIFs managed by both 
national banks and FSAs.\1\
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    \1\ Twelve CFR 9.18 expressly applies to national banks. FSAs 
are subject to 12 CFR 9.18 pursuant to 12 CFR 150.260(b)(3).
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    Twelve CFR 9.8 and 12 CFR 150.410-150.430 require that national 
banks and FSAs document the establishment and termination of each 
fiduciary account and maintain adequate records. Records must be 
retained for a period of three years from the later of the termination 
of the account or the termination of any litigation. The records must 
be separate and distinct from other records of the institution.
    Twelve CFR 9.9 and 150.480 require national banks and FSAs to note 
the results of any audit conducted (including significant actions taken 
as a result of the audit) in the minutes of the board of directors. 
National banks and FSAs that adopt a continuous audit system must note 
the results of all discrete audits performed since the last audit 
report (including significant actions taken as a result of the audits) 
in the minutes of the board of directors at least once during each 
calendar year.
    Twelve CFR 9.17(a) and 150.530 require that an institution seeking 
to surrender its fiduciary powers file with the OCC a certified copy of 
the resolution of its board of directors evidencing that intent.
    Twelve CFR 9.18(b)(1) (and 12 CFR 150.260 by cross-reference) 
require national banks and FSAs to establish and maintain each CIF in 
accordance with a written plan (Plan). The Plan must include provisions 
relating to:
     Investment powers and policies;
     Allocation of income, profits, and losses;
     Fees and expenses that will be charged to the fund and to 
participating accounts;
     Terms and conditions regarding admission and withdrawal of 
participating accounts;
     Audits of participating accounts;
     Basis and method of valuing assets in the fund;
     Expected frequency for income distribution to 
participating accounts;
     Minimum frequency for valuation of fund assets;
     Amount of time following a valuation date during which the 
valuation must be made;
     Bases upon which the institution may terminate the fund; 
and
     Any other matters necessary to define clearly the rights 
of participating accounts.
    Twelve CFR 9.18(b)(1) (and 12 CFR 150.260 by cross-reference) 
require that national banks and FSAs make a copy of the Plan available 
for public inspection at their main offices and provide a copy of the 
Plan to any person who requests it.
    Twelve CFR 9.18(b)(4)(iii)(E) (and 12 CFR 150.260 by cross-
reference) require that national banks and FSAs adopt portfolio and 
issuer qualitative standards and concentration restrictions for STIFs.
    Twelve CFR 9.18(b)(4)(iii)(F) (and 12 CFR 150.260 by cross-
reference) require that national banks and FSAs adopt liquidity 
standards and include provisions that address contingency funding needs 
for STIFs.
    Twelve CFR 9.18(b)(4)(iii)(G) (and 12 CFR 150.260 by cross-
reference) require that national banks and FSAs adopt shadow pricing 
procedures for STIFs that calculate the extent of difference, if any, 
of the mark-to-market net asset value per participating interest from 
the STIF's amortized cost per participating interest and to take 
certain actions if that difference exceeds $0.005 per participating 
interest.
    Twelve CFR 9.18(b)(4)(iii)(H) (and 12 CFR 150.260 by cross-
reference) require that national banks and FSAs adopt, for STIFs, 
procedures for stress testing of the STIF's ability to maintain a 
stable net asset value per participating interest and provide for 
reporting the results.
    Twelve CFR 9.18(b)(4)(iii)(I) (and 12 CFR 150.260 by cross-
reference) require that national banks and FSAs adopt, for STIFs, 
procedures that require an institution to disclose to the OCC and to 
STIF participants within five business days after each calendar month-
end the following information about the fund: total assets under 
management; mark-to-market and amortized cost net asset values; dollar-
weighted average portfolio maturity; dollar-weighted average portfolio 
life maturity as of the last business day of the prior calendar month; 
and certain other security-level information for each security held.
    Twelve CFR 9.18(b)(4)(iii)(J) (and 12 CFR 150.260 by cross-
reference) require that national banks and FSAs adopt, for STIFs, 
procedures that require a national bank or FSA that manages a STIF to 
notify the OCC prior to or within one business day thereafter of 
certain events.
    Twelve CFR 9.18(b)(4)(iii)(K) (and 12 CFR 150.260 by cross-
reference) require that national banks and FSAs, adopt, for STIFs, 
certain procedures in the event that the STIF has repriced its net 
asset value below $0.995 per participating interest.
    Twelve CFR 9.18(b)(4)(iii)(L) (and 12 CFR 150.260 by cross-
reference) require that national banks and FSAs adopt, for STIFs, 
procedures for initiating liquidation of a STIF upon the suspension or 
limitation of withdrawals as a result of redemptions.
    Twelve CFR 9.18(b)(5)(iii)(A) (and 12 CFR 150.260 by cross-
reference) provides that a national bank or FSA administering a 
collective investment fund that is invested primarily in real estate or 
other assets that are not readily marketable may require a prior notice 
period, not to exceed one year, for withdrawals.
    Section 9.18(b)(5)(iii)(B) (and 12 CFR 150.260 by cross-reference) 
provides that a bank that requires a prior notice period for 
withdrawals must withdraw an account from the fund within the prior 
notice period or, if permissible under the fund's written plan, within 
one year after the date on which notice was required.
    Section 9.18(b)(5)(iii)(C) (and 12 CFR 150.260 by cross-reference) 
provides that a bank may, with OCC approval, withdraw an account from a 
collective investment fund up to one year after the end of the standard 
withdrawal period in 12 CFR 9.18(b)(5)(iii)(B) if certain conditions 
are satisfied. Among other conditions, the fund's written plan, 
including its notice and withdrawal policy, must authorize an extended

[[Page 55308]]

withdrawal period and be fully disclosed to fund participants. In 
addition, the bank's board of directors, or a committee authorized by 
the board of directors, must determine that, due to unanticipated and 
severe market conditions for specific assets held by the fund, an 
extended withdrawal period is necessary in order to preserve the value 
of the fund's assets for the benefit of fund participants.
    Twelve CFR 9.18(b)(5)(iii)(D) provides that a bank may request that 
the OCC approve an extension beyond the initial one-year extended 
withdrawal period in 12 CFR 9.18(b)(5)(iii)(C) if certain conditions 
are satisfied. Extensions past the initial one-year extension must be 
requested and approved annually, for a maximum of two years after the 
initial one-year extension period.
    Twelve CFR 9.18(b)(6)(ii) (and 12 CFR 150.260 by cross-reference) 
require, for CIFs, that national banks and FSAs, at least once during 
each 12-month period, prepare a financial report of the fund based on 
the audit required by section 9.18(b)(6)(i). The report must disclose 
the fund's fees and expenses in a manner consistent with applicable 
state law in the state which the institution maintains the fund and 
must contain:
     A list of investments in the fund showing the cost and 
current market value of each investment;
     A statement covering the period after the previous report 
showing the following (organized by type of investment):
    [cir] A summary of purchases (with costs);
    [cir] A summary of sales (with profit or loss and any investment 
change);
    [cir] Income and disbursements; and
    [cir] An appropriate notation of investments.
    Twelve CFR 9.18(b)(6)(iv) (and 12 CFR 150.260 by cross-reference) 
require that an institution managing a CIF provide a copy of the 
financial report, or provide notice that a copy of the report is 
available upon request without charge, to each person who ordinarily 
would receive a regular periodic accounting with respect to each 
participating account. The institution may provide a copy to 
prospective customers. In addition, the institution must provide a copy 
of the report upon request to any person for a reasonable charge.
    Twelve CFR 9.18(c)(5) (and 12 CFR 150.260 by cross-reference) 
require that, for special exemption CIFs, national banks and FSAs, 
respectively, must submit to the OCC a written plan that sets forth:
     The reason the proposed fund requires a special exemption;
     The provisions of the fund that are inconsistent with 
section 9.18(a) and (b);
     The provisions of section 9.18(b) for which the 
institution seeks an exemption; and
     The manner in which the proposed fund addresses the rights 
and interests of participating accounts.
    Estimated Burden:
    Estimated Frequency of Response: On occasion.
    Estimated Number of Respondents: 282.
    Estimated Total Annual Burden: 198,957 hours.
    Comments submitted in response to this notice will be summarized 
and included in the request for OMB approval. All comments will become 
a matter of public record. Comments are invited on: (a) Whether the 
collection of information is necessary for the proper performance of 
the functions of the OCC, including whether the information has 
practical utility; (b) The accuracy of the OCC's estimate of the burden 
of the collection of information; (c) Ways to enhance the quality, 
utility, and clarity of the information to be collected; (d) Ways to 
minimize the burden of the collection on respondents, including through 
the use of automated collection techniques or other forms of 
information technology; and (e) Estimates of capital or start-up costs 
and costs of operation, maintenance, and purchase of services to 
provide information.

Patrick T. Tierney,
Assistant Director, Office of the Comptroller of the Currency.
[FR Doc. 2024-14611 Filed 7-2-24; 8:45 am]
BILLING CODE 4810-33-P